International Data Corporation (IDC) has released its 2014 MarketScape report profiling and positioning the leading providers in the worldwide human resource business process outsourcing (HR BPO) market.
This new research shows that HR executives will likely move from on-premise to multi-tenant software as a service (SaaS)-based systems, which means lower provider costs. If these costs are passed on to the buyer, they could make BPO attractive again and help drive growth within the HR BPO market.
IDC MarketScape: Worldwide HR BPO Vendor Analysis evaluates the offerings and prospects of 10 vendors’ relative capabilities. These providers were evaluated using detailed criteria that IDC identified as key factors contributing to vendor success in the worldwide HR BPO market.
The vendors included in the analysis are Accenture, Automatic Data Processing (ADP), Aon Hewitt, HP, IBM, Infosys, NorthgateArinso (NGA), Tata Consultancy Services (TCS), WNS, and Xerox HR Services.
The IDC MarketScape methodology placed Accenture, ADP, Aon Hewitt, IBM and NGA in the Leaders category.
“Multi-tenant SaaS-based systems provide the one-to-many platform that could boost popularity of HR BPO. Despite numerous attempts to standardize on a platform in the past, the majority of HR BPO deals require the service provider to assume responsibility for whatever HR platform is in place,” says Lisa Rowan, research vice-president: HR Talent and Learning Strategies at IDC.
“Now, HR BPO providers are taking a close look at SaaS platforms.”